EUR/USD remains capped at the top of its short-term channel but with support at 1.1786/82 ideally holding to keep the broader risk skewed higher, per Credit Suisse.
“EUR/USD extends its near-term consolidation following the rejection from the top of its short-term trend channel, today seen at 1.1900 but with daily MACD still positive and with our broader view still that weakness from the beginning of September is a corrective phase only, we maintain our view that the risks are skewed to the upside from here.”
“Immediate resistance is seen at 1.1867, above which should see a move back to 1.1880/81, then 1.1900/01, with the next key resistance seen at the 1.1918/30 corrective price high and 78.6% retracement of the September fall. This latter area remains seen as the barrier to a fresh challenge on the 1.2011 high.”
“Bigger picture, our medium-term objective remains the ‘neckline’ to the 2018 top at 1.2145/55.”
“Immediate support moves to 1.1825, with a move below 1.1786/82 needed to mark a near-term (minor) top for a fall back to the lower end of the short-term channel, today seen at 1.1727.”
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